Singapore Expats Forum

Pre termination penalty in employment contract

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

User avatar
the lynx
Governor
Governor
Posts: 5239
Joined: Thu, 09 Dec 2010
Location: Midgar

Re: bad idea to sign a contract

Postby the lynx » Fri, 28 Feb 2014 8:41 am

lalitpct wrote:I know but damage is done and we learnt lesson for life.

What is the maximum punishment/worst think that We can get (she is paid only 1k) and I am on EP.


Since her salary is below SGD2k, she is protected under Employment Act, the links are shown above by other posters.

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Re: Contract issue

Postby zzm9980 » Fri, 28 Feb 2014 9:54 am

beppi wrote:The answer is in the contract:
lalitpct wrote:less than 1 year 10.0 k
less than 2 year 7.5 k
less than 3 year 5.0 k


Since she is covered by the employment act, it is actually incorrect.

Per the employment act, for breaching the contract she would have to pay just the amount of her monthly salary per her prescribed notice period (also in the employment act.

I don't know how long this person has been employed, but it would be their salary ($1k SGD per OP) over one of the following three periods of time:

one day’s notice if he has been so employed for less than 26 weeks;
(b)
one week’s notice if he has been so employed for 26 weeks or more but less than 2 years;
(c)
2 weeks’ notice if he has been so employed for 2 years or more but less than 5 years; and[/list]


So at most, ~$500sgd / 2 weeks salary.

Read sections' 10, 11, and 16 (all very brief) of the employment act for source.

User avatar
Wd40
Director
Director
Posts: 3797
Joined: Tue, 04 Dec 2012
Location: SIndiapore

Postby Wd40 » Fri, 28 Feb 2014 10:41 am

Good you mentioned the name of this company. I am in the midst of a job search and I have come across ads from the company. I am going to be very careful with them.

In general, whenever I get an offer letter, the 1st page that I turn to is the termination clause and notice period pages. You must be really desperate to get a job for your wife, to agree to those kind of terms for that salary.

Beeroclock
Reporter
Reporter
Posts: 718
Joined: Thu, 31 Oct 2013

Postby Beeroclock » Fri, 28 Feb 2014 10:54 am

Hope MOM will lend some advice/support. The clause is ridiculous "In the event that you resign or are terminated (for any reason)". If you have evidence of employer behavior to pressurize your wife, i.e. the unpaid overtime requests etc, I would try to keep specific notes on that as it might help support your case that it's an aggravated resignation.

AngMoG
Reporter
Reporter
Posts: 609
Joined: Wed, 17 Apr 2013

Postby AngMoG » Sat, 01 Mar 2014 12:02 am

Just to chime in here, I believe that clause may be qualified as "unreasonable" and thus be void. What is "reasonable" in SG law is a pretty stretchy term, but this one should fall outside its bounds.

Beeroclock
Reporter
Reporter
Posts: 718
Joined: Thu, 31 Oct 2013

Postby Beeroclock » Sat, 01 Mar 2014 12:12 am

AngMoG wrote:Just to chime in here, I believe that clause may be qualified as "unreasonable" and thus be void. What is "reasonable" in SG law is a pretty stretchy term, but this one should fall outside its bounds.
yes exactly, if you follow this clause literally, employer could terminate employee on day 1 (for any reason) and still demand $10k :shock:

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Sat, 01 Mar 2014 8:15 am

AngMoG wrote:Just to chime in here, I believe that clause may be qualified as "unreasonable" and thus be void. What is "reasonable" in SG law is a pretty stretchy term, but this one should fall outside its bounds.


It is unreasonable, which is why I believe the employment act put the financial limits on it that are much lower than what the contract calls for.

User avatar
x9200
Moderator
Moderator
Posts: 9245
Joined: Mon, 07 Sep 2009
Location: Singapore

Postby x9200 » Sat, 01 Mar 2014 12:56 pm

Has the employer expressed anyhow the intention of charging this penalty? From my experience with various local agreements/contracts they are full of absurds like this one or even much better and in practical life it get hardly executed (if there is any legal possibility at all).

lalitpct
Member
Member
Posts: 42
Joined: Mon, 09 Dec 2013

Postby lalitpct » Tue, 04 Mar 2014 10:30 am

Now she has been terminated ,, what are the options that I can have now.
Dont want to be constant fear of some legal notices ..at present they dont any address of us (while joining stayed at differentt house)...
What I can do from my side to be on safe side..

Beeroclock
Reporter
Reporter
Posts: 718
Joined: Thu, 31 Oct 2013

Postby Beeroclock » Tue, 04 Mar 2014 11:38 am

lalitpct wrote:Now she has been terminated ,, what are the options that I can have now.
Dont want to be constant fear of some legal notices ..at present they dont any address of us (while joining stayed at differentt house)...
What I can do from my side to be on safe side..
Did you try contact MOM for their advice/support ? As already mentioned in several earlier posts.

lalitpct
Member
Member
Posts: 42
Joined: Mon, 09 Dec 2013

Postby lalitpct » Tue, 04 Mar 2014 4:29 pm

Beeroclock wrote:
lalitpct wrote:Now she has been terminated ,, what are the options that I can have now.
Dont want to be constant fear of some legal notices ..at present they dont any address of us (while joining stayed at differentt house)...
What I can do from my side to be on safe side..
Did you try contact MOM for their advice/support ? As already mentioned in several earlier posts.


I did and they said they can help in Overtime allowance but not in contract stuff . All those things are handled case by case by the courts.

WHile terminating I asked my wife not to sign anywhere and hence they changed the termination letter where it has signature of only manager and not ours. they terminated in one day so that I think is illegal also performance was also not that low ( but we are at there mercy)..
This month salary also pending (on 7th) , so anything that I can do apart from this..

I am surprised that such fraud companies are running in sg without any fear of law , they are generating revenue by penalties and not through regular business..

beppi
Manager
Manager
Posts: 1751
Joined: Thu, 07 Sep 2006
Location: Ahlongistan (O$P$)

Postby beppi » Tue, 04 Mar 2014 4:59 pm

This is what I would do in your situation:
- Forget about the last salary - you will probably not get it without legal trouble (which isn't worth it!).
- Do not pay the penalty, even if the company asks for it (I personally think they will not ask). Then the company would have to go to court for it (which most likely they won't find worth the trouble, especially given the risk that they might lose).

lalitpct
Member
Member
Posts: 42
Joined: Mon, 09 Dec 2013

Postby lalitpct » Tue, 04 Mar 2014 5:01 pm

x9200 wrote:Has the employer expressed anyhow the intention of charging this penalty? From my experience with various local agreements/contracts they are full of absurds like this one or even much better and in practical life it get hardly executed (if there is any legal possibility at all).

They asked money but spouse said NO , and then they said your call

lalitpct
Member
Member
Posts: 42
Joined: Mon, 09 Dec 2013

Postby lalitpct » Tue, 04 Mar 2014 5:43 pm

beppi wrote:This is what I would do in your situation:
- Forget about the last salary - you will probably not get it without legal trouble (which isn't worth it!).
- Do not pay the penalty, even if the company asks for it (I personally think they will not ask). Then the company would have to go to court for it (which most likely they won't find worth the trouble, especially given the risk that they might lose).


Even i dont want last salary but dont want them to hit the first blow by sending some legal notice...want to safeguard myself.

beppi
Manager
Manager
Posts: 1751
Joined: Thu, 07 Sep 2006
Location: Ahlongistan (O$P$)

Postby beppi » Tue, 04 Mar 2014 5:45 pm

Starting a lawsuit is a basic right everybody in a free, democratic country has.
You cannot prevent them from going to court if they want to.


  • Similar Topics
    Replies
    Views
    Last post

Return to “Careers & Jobs in Singapore”

Who is online

Users browsing this forum: No registered users and 2 guests